CBN REPORT: FG’S THREE-MONTH SPENDING WAS N1.43 TRILLION HIGHER THAN ITS INCOME.

Babatunji Wusu –

According to data received from the Central Bank of Nigeria, the Federal Government’s spending in the first three months of 2023 was N1.43 trillion higher than its receipts.

This was 9.6% more than the third quarter of 2022, according to the CBN’s economic report for the third quarter of 2023.

It read, “The FGN’s fiscal activities in Q1 2023 produced a deficit. The FGN’s provisional fiscal deficit, at N1.43 trillion, was 22.1% below the objective but 9.6% higher than the previous quarter’s figure.

The report states that the first quarter’s fiscal performance in 2023 was hampered by poor oil revenue realization. As a result, the retained revenue of the FGN decreased by 10.7% in comparison to Q4 2022 and was 46.1% below the quarterly objective.

In comparison to the previous quarter and the quarterly target, FGN’s total spending decreased by 1.3 and 36.0%, respectively.

Accordingly, the overall deficit for the FGN increased in comparison to Q4 of 2022, but decreased by 22.1% when compared to the proportionate budget. At the end of December 2022, the total public debt was N46.25 trillion, or 22.8% of GDP.

According to the CBN report, gross federation revenue at N3.48 trillion was N0.4 and 26.6 percent lower than the benchmark set by the budget, Q4 of 2022, and those levels.

Government revenue continued to be dominated by non-oil sources, making up 61.4% of total income, while oil receipts made up 38.6%.

In comparison to the Q4 and quarterly targets for 2022, oil revenue fell by 3.0 and 43.5% to N1.34 trillion. Due to decreasing domestic oil production, the performance was an indication of income deficits from petroleum profit tax and royalties.

Contrarily, non-oil receipts, at N2.14n, improved from the prior quarter by 1.2% but fell 9.6% short of the quarterly target of N2.37tn, according to the report.